MARYLINKS PROPERTY MANAGEMENT LTD

Executive Summary

Marylinks Property Management Ltd is a young, small-scale property management firm with a stable asset base but limited liquidity and a significant bank loan. While the balance sheet shows positive net assets and working capital, low cash reserves necessitate careful monitoring of cash flow and debtor collections. Conditional credit approval is recommended, with ongoing oversight of liquidity and debt servicing capacity.

MARYLINKS PROPERTY MANAGEMENT LTD - Analysis Report

Company Number: 13816152

Analysis Date: 2025-07-29 15:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Marylinks Property Management Ltd demonstrates a stable asset base and equity position, but the company’s ability to service its long-term bank loan requires caution. The firm has a modest net asset value (£45,563) and recurring liabilities (£71,975 bank loan), with limited cash reserves (£640). Given the company is only two years old, ongoing operational cash flow generation has yet to be proven robust. Conditional approval is recommended, contingent on evidence of improved liquidity and regular debt servicing, plus monitoring of debtor collections.

2. Financial Strength:
   The balance sheet shows fixed assets (investment property) valued consistently at £96,000, supported by current assets around £22,900, mainly debtors (£22,303). Current liabilities are low (£1,405), yielding positive working capital (£21,538). However, the company holds a significant long-term bank loan (£71,975), which exceeds net current assets and requires steady cash inflows for repayment. Shareholders’ funds stand at £45,563, reflecting a small retained loss (£4,437), which is not alarming at this stage of development. Overall, the financial structure is leveraged but not excessively so for a small property management firm.

3. Cash Flow Assessment:
   The company’s cash at bank is very limited (£640), indicating tight liquidity. Debtors form the bulk of current assets, which suggests cash conversion depends significantly on timely collection. Current liabilities are minimal, but the long-term loan imposes future cash outflow obligations. The lack of disclosed turnover or profit figures limits cash flow visibility, but positive net current assets suggest some operational buffer. For credit risk, the critical factor will be the company’s ability to convert receivables into cash and maintain loan payments without additional borrowing.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure liquidity is maintained.
• Cash flow trends over the next 12 months to verify capacity for loan servicing.
• Profitability development beyond balance sheet stability to assess business viability.
• Any changes in asset valuations, as the investment property is a key asset.
• Director’s compliance with filing deadlines and any changes in credit terms or loan conditions.